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DoorDash sues New York City over new data sharing law

A DoorDash sign is pictured on a restaurant on the day it went public in New York City, December 9, 2020.

Carlo Allegri | Reuters

DoorDash filed a lawsuit against New York City on Wednesday over a new law that requires delivery companies to share more customer data with their restaurants.

City council approved a bill earlier this summer requiring delivery companies to provide customer data, such as names, phone numbers, emails, and delivery addresses, to restaurants that fulfill the order. , unless a client withdraws.

The law is expected to come into force in December.

DoorDash categorically disavowed the bill, calling it unconstitutional and invading the privacy of New York residents. The company argued in the lawsuit that there were “virtually no restrictions on what restaurants can do with this data,” or guidelines on data security.

“In an era of heightened concerns about data privacy and identity theft, this forced disclosure is a shocking and pervasive intrusion on consumer privacy,” DoorDash said in the complaint.

The company also argued that restaurants will be able to use its trade secrets to compete directly with DoorDash. According to the lawsuit, this would require the company to “change its services in a way that results in fewer resources available to restaurants, fewer earning opportunities for delivery people and less choice for New Town customers. York “.

Some restaurants have asked app-based delivery companies like DoorDash, Grubhub, and Uber Eats to share more customer data so their trust in the platforms isn’t as strong. Restaurants could market directly to customers and would not have to feel pressured to use a service.

Wednesday’s lawsuit is the latest in a string of complaints between food delivery platforms and regulators. Last week, DoorDash, Grubhub, and Uber Eats filed a lawsuit against New York City over a bill that would make emergency delivery fee caps permanent during the Covid pandemic.

The companies say the law is unconstitutional because “it interferes with freely negotiated contracts between platforms and restaurants by changing and dictating the economic conditions under which a vibrant industry operates.”

Likewise, DoorDash and Grubhub are suing San Francisco, which also introduced a permanent 15% cap on delivery charges.

The New York mayor’s office did not immediately respond to a request for comment.

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